chap 005 (operations management) process analysis
DESCRIPTION
Chap 005 (Operations Management) Process AnalysisTRANSCRIPT
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Chapter 5
Process Analysis
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Process Analysis
Process Flowcharting
Types of Processes
Process Performance Metrics
OBJECTIVES
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Process Analysis Terms
Process: Is any part of an organization that takes inputs and transforms them into outputs
Cycle Time: Is the average successive time between completions of successive units
Utilization: Is the ratio of the time that a resource is actually activated relative to the time that it is available for use
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Process FlowchartingDefined Process flowcharting is the use of a
diagram to present the major elements of a process
The basic elements can include tasks or operations, flows of materials or customers, decision points, and storage areas or queues
It is an ideal methodology by which to begin analyzing a process
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Flowchart Symbols
Tasks or operations Examples: Giving an admission ticket to a customer, installing a engine in a car, etc.
Examples: Giving an admission ticket to a customer, installing a engine in a car, etc.
Decision Points Examples: How much change should be given to a customer, which wrench should be used, etc.
Examples: How much change should be given to a customer, which wrench should be used, etc.
Purpose and Examples
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Examples: Sheds, lines of people waiting for a service, etc.
Examples: Sheds, lines of people waiting for a service, etc.
Examples: Customers moving to a seat, mechanic getting a tool, etc.
Examples: Customers moving to a seat, mechanic getting a tool, etc.
Storage areas or queues
Flows of materials or customers
Purpose and Examples Flowchart Symbols
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Example: Flowchart of Student Going to School
Yes
No
Goof off
Go to school today?
Walk to class
Drive to school
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Types of Processes
Single-stage Process
Stage 1
Stage 1 Stage 2 Stage 3
Multi-stage Process
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Types of Processes (Continued)
Stage 1 Stage 2
Buffer
Multi-stage Process with Buffer
A buffer refers to a storage area between stages where the output of a stage is placed prior to being used in a downstream stage
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Other Process Terminology
Blocking– Occurs when the activities in a stage must stop
because there is no place to deposit the item just completed
– If there is no room for an employee to place a unit of work down, the employee will hold on to it not able to continue working on the next unit
Starving– Occurs when the activities in a stage must stop
because there is no work – If an employee is waiting at a work station and no
work is coming to the employee to process, the employee will remain idle until the next unit of work comes
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Other Process Terminology (Continued)
Bottleneck– Occurs when the limited capacity of a
process causes work to pile up or become unevenly distributed in the flow of a process
– If an employee works too slow in a multi-stage process, work will begin to pile up in front of that employee. In this is case the employee represents the limited capacity causing the bottleneck.
Pacing– Refers to the fixed timing of the movement
of items through the process
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Other Types of Processes
Make-to-order– Only activated in response to an actual order– Both work-in-process and finished goods
inventory kept to a minimum Make-to-stock
– Process activated to meet expected or forecast demand
– Customer orders are served from target stocking level
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Process Performance Metrics
Operation time = Setup time + Run time
Throughput time = Average time for a unit to
move through the system
Velocity = Throughput time
Value-added time
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Process Performance Metrics (Continued)
Cycle time = Average time betweencompletion of units
Throughput rate = 1 . Cycle time
Efficiency = Actual output Standard Output
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Process Performance Metrics (Continued)
Productivity = Output
Input
Utilization = Time Activated
Time Available
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Cycle Time Example
Suppose you had to produce 600 units in 80 hours to meet the demand requirements of a product. What is the cycle time to meet this demand requirement?
Suppose you had to produce 600 units in 80 hours to meet the demand requirements of a product. What is the cycle time to meet this demand requirement?
Answer: There are 4,800 minutes (60 minutes/hour x 80 hours) in 80 hours. So the average time between completions would have to be: Cycle time = 4,800/600 units = 8 minutes.
Answer: There are 4,800 minutes (60 minutes/hour x 80 hours) in 80 hours. So the average time between completions would have to be: Cycle time = 4,800/600 units = 8 minutes.
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Process Throughput Time Reduction
Perform activities in parallel
Change the sequence of activities
Reduce interruptions
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Question Bowl
Which of the following are possible examples of “cycle times”?
a. Time for each television to come off an assembly line.
b. Time it takes for a stock purchasec. Time it takes for an instructor to grade
an examd. Time it takes to build an automobilee. All of the above
Answer: e. All of the above
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Question Bowl
Which of the following are used as symbols in a Process Flowchart?
a. Decision pointsb. Blockingc. Starvingd. Bottlenecke. All of the above
Answer: a. Decision points (A diamond shaped symbol.)
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Question Bowl
Which type of process is configured as follows?
a. Single-stage processb. Multi-stage processc. Make-to-order processd. Make-to-stock processe. All of the above
Answer: b. Multi-stage process
1 2 3
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Question Bowl
When an assembly line employee is waiting for a unit of work to come down the line so they can stop being idle and get back to work, it is an example of which of the following process terms?
a. Bufferingb. Blockingc. Starvingd. Bottlenecke. All of the aboveAnswer: c. Starving
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Question Bowl
When a company waits until they have an order for their product in hand before beginning any production for that order, we can characterize their operation as which of the following processes?
a. Single-stage processb. Multi-stage processc. Make-to-order processd. Make-to-stock processe. All of the above
Answer: c. Make-to-order process
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Question Bowl
If the Run Time for a batch of parts is 45 minutes on a machine, and the Setup Time is 65 minutes, which of the following is the Operation Time?
a. 75 minutesb. 110 minutesc. Only 45 minutesd. 65/45 minutes or 1.44 hourse. Can not be computed on the data above
Answer: b. 110 minutes ( Operation Time is the sum of Run Time and Setup Time, or 65 + 45 = 110 minutes)
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Question Bowl
If the standard expected phone calls for a telephone marketers is 24 per hour, and one telephone marketer did 27 per hour, which of the following can be used to describe their Efficiency?
a. 88.8%b. 100%c. 112.5%d. Well over 150%e. Can not computed on the information given.
Answer: c. 112.5% (Ratio of actual performance/expected performance, or (27/24) x 100 = 110 minutes)
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End of Chapter 5